A global conglomerate valued at $16B with strong footholds in aerospace, automotive, and industrial manufacturing sectors such as fluid handling, automation technologies, air compressors, and electrical systems. The company has identified supply chain enhancement as a pivotal strategic goal. Its operations span across North America, Europe, and East Asia.
Supply chain reorganization and process enhancements secured enduring, sustainable outcomes for clients beyond our engagement
Conducted 250 supplier site assessments and 200 negotiations, leading to the integration of 110 Strategic Alliance Partners
Handling a supplier network of over 4,200 vendors representing $920M in spending across twelve operational divisions, the company partnered with KGM to identify and achieve supply chain cost-saving opportunities within the industrial products division.
After identifying potential areas for supply chain savings, KGM recommended a restructured organizational framework to maximize these opportunities effectively.
KGM proceeded to design and implement an updated organizational structure. This included recruiting, onboarding, and training category managers, as well as introducing industry-leading operational practices and sourcing methodologies. We transformed pre-existing client category "Synergy" teams into a high-performing purchasing organization and developed comprehensive Global Supply Strategies for indirect materials, components, and finished goods, addressing challenges related to low-volume, specialized, and engineered products. Additionally, we organized, trained, and guided cross-functional procurement teams to select alliance suppliers for long-term improvements in cost, delivery, and service.
In addition to delivering significant project savings, our client established a transformative process and organizational structure that ensured sustained long-term savings and total cost optimization. Our recommendations generated $170M (20%) in savings across ten product categories, including Printed Materials, Telecommunications, Electric Motors, Injection Molded Plastics, Ocean Freight, LTL, Truckload Transportation, and Packaging. We increased global procurement by 65%, with 80% now sourced from Best Cost Country suppliers. Lastly, we conducted 260 supplier site visits (100 International, 160 North America) and 200 negotiations, resulting in the selection of 110 Strategic Alliance Partners.
